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of <h1>Tribunal Upholds Disallowance of Interest on Diverted Funds for Non-Business Use</h1> <h3>Commissioner Of Income Tax - I Versus Anjani Synthetics Ltd.</h3> The High Court upheld the Tribunal's decision, dismissing the Revenue's appeal regarding the disallowance of interest expenditure on diverted funds for ... - Issues involved: Appeal by Revenue challenging order of Income Tax Appellate Tribunal regarding disallowance of interest expenditure on diverted funds for non-business purpose.Summary:1. The Assessing Officer disallowed interest expenditure of Rs. 43 lakhs u/s 10(33) and 14A of the Income Tax Act, as funds were diverted for non-business purposes.2. CIT(Appeals) set aside the Assessing Officer's order and allowed the appeal based on detailed findings.3. Revenue challenged CIT(Appeals) order before the Tribunal, which dismissed the appeal.4. Tribunal found no material to dislodge CIT(Appeals) findings and noted sufficient funds were available for investments.5. Tribunal cited the case of S.A. Builders Ltd. vs. Commissioner of Income-Tax, emphasizing commercial expediency for deductions.6. Tribunal relied on decisions of other High Courts and agreed with CIT(Appeals) findings.7. No infirmity was found in Tribunal's reasoning, which applied the law aptly to the presented facts.8. Tribunal concluded that the investment in shares was made from the assessee's own funds, hence dismissing Revenue's appeal as no substantial question of law was raised.Therefore, the High Court upheld the Tribunal's decision, dismissing the Revenue's appeal regarding the disallowance of interest expenditure on diverted funds for non-business purposes.
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